United Kingdom government moves to tax tech giants

United Kingdom government moves to tax tech giants

Centrist figures in Labour have criticised shadow chancellor John McDonnell for backing perks for the wealthy while there are "people dying on British streets".

Chancellor of the Exchequer Phillip Hammond has confirmed a "digital tax" in the autumn budget aimed at holding the internet players accountable to reasonable tax rates.

"We are ending austerity, we are bringing debt down, we are putting more money into our public services", Mrs May said, to jeers from the opposition benches. What we are preparing for is Britain's future.

Given her insistence that she was not planning an early general election before calling one in 2017, the PM's assurances on the issue are likely to ring somewhat hollow.

The move backfired when the Conservatives lost their majority in Parliament, leaving May atop a minority government whose fragility has complicated divorce negotiations with the EU.

The IFS said it was debatable whether the budget heralded the end of austerity, but it added that the plans marked a change of fiscal direction for Britain.

On the tax front, small firms up and down the country will be pleased to see the VAT threshold frozen for two years.

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Scottish Labour leader Richard Leonard said: "The chancellor shifted the budget from a Wednesday slot to avoid Halloween headlines, but as much as Philip Hammond wants to dress up this Tory budget as an end to austerity, people across the United Kingdom will see through that disguise".

But the spectre of a no-deal Brexit hung over the 72-minute statement, with the Office for Budget Responsibility (OBR) warning that failure to reach agreement with Brussels would hit the economy hard.

The announcement comes after the Treasury rejected a call from the Public Accounts Committee to calculate the returns investors have made from Private Finance Initiative projects, saying that the cost of the exercise would be too high.

Hammond suggested the tax will begin in April 2020, pending consultation.

The European Commission is said to be seeking a rate of 3 percent. If we didn't we would face a scenario where some on higher incomes would pay less tax than others on lower incomes'. He's also signaled he intends to increase National Health Service funding by 20 billion pounds a year by 2023 without raising taxes.

"But what the OBR gives the OBR can take away".

While most of his Budget involved loosening the purse strings, Mr Hammond announced the new tax on tech giants to make sure they "pay their fair share towards supporting our public services".

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